The Sinclair family buy an old house in the country to set up an Antique shop. It was a workhouse in 1865 and none of the buyers ever stayed long because it was haunted by a little boy who died from the plague. On their first day the ghost kept moving things around hoping that the family would move out. But in the night, there was a fire in the basement and he alerted the children. The fire was put out, and the ghost came forward and agreed not to haunt the children if they would be his friends. They agreed that their parents should not know about him, and named him "...
Tom has to write a history essay and asks Nobody to tell him what life was like in the 1800's . Nobody tells him about Jack Treadful, the evil Fagin-like man who used to send the children out to steal for him. Nobody gets him from the police station he haunts, but once at the house, he steals Peter's prize snuff box. Tom can't tell his parents about the ghosts, so he gets Nobody to threaten him. They will tell Peter where Jack keeps his stolen treasures in the basement if he does not return the box.
The Sinclairs believe that Mr. Heathcote Small is a charming old gentleman, but Nobody knows better.
When Mum is left alone in the house one night, Nobody has to protect her against intruders.
Nobody brings his ghost friend Beatrice Ellen to the house to meet Tom and Gilly. Beatrice causes so much trouble because she wants attention. Gilly befriends her and she feels happy again. Now she can leave forever, but Nobody vows to stay away because Beatice is gone and he is angry.
Tom and Gilly are sad because Nobody has kept his word and stayed away. He finally appears after two weeks and explains that if he leaves any longer, another ghost can steal his house. He is jealous that he does not have parents because now, since Beatrice Ellen is gone, he has no one to talk to. Meanwhile, Peter and Jane notice the children have been sad and decide to throw them a costume party. This is a great opportunity for Nobody to blend in as well as have a talk with Tom's father.
Tom and Gilly are too busy to play with Nobody, so he decides to haunt their parents. A ghost hunter has heard about the haunting at the house and has offered his services. Nobody is afraid that he will be exorcised. He tells everyone in the ghost world that he is leaving the house so the greediest and meanest ghost "Silver Ned" will take over the house and be exorcised in his place.